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Study Finds 94% of Endowments Are Investing in Cryptocurrency

Cryptocurrency Edowment Investing 2019

Cryptocurrency adoption throughout 2019 continues to be at an all time high, with the number of institutional investors in the industry also rising.

According to the results of a study published on April 12, 94 percent of endowments surveyed reported having made crypto-related investments, with 50 percent of respondents reporting an intention to increase their position over the next twelve months.

The study, which was conducted in Q4 2018 in a joint effort by publications Global Custodian and The Trade Crypto, as well as blockchain security firm BitGo, concluded that endowments money has seen a massive uptick in cryptocurrency investing over the last several years. Of the 150 endowments surveyed, 89 percent were based in the United States, with the rest coming from the United Kingdom and Canada. Only 6 percent of respondents reported not being currently invested in cryptocurrency or crypto-related products.

The vast majority of endowments surveyed reported holding a positive view on the growth of cryptocurrency and its financial products in the coming decade. Only 7 percent of respondents anticipated decreasing their position current position in crypto over the next 12 months, with a whopping 50 percent indicating they planned to do the opposite by growing their position.

Jonathan Watkins, managing editor for Global Custodian and The Trade, commented that the wait for institutional investment into cryptocurrency has actually been more than anticipation–most firms have been actively investing in the space for the last year and a half,

“All the talk over the past 18 months has been around when institutional investors will begin participating in cryptocurrency investments, but it turns out they had already arrived, in the form of endowment funds.”

The majority of endowments surveyed are holding cryptocurrency, with 54 percent of respondents claiming direct investments into crypto assets. An additional 46 percent reported indirectly investing in cryptocurrency via the use of crypto-diversified funds.

Interestingly, the survey results found that most endowments are looking to forthcoming regulation as criteria for investing into a project. Endowments reported the ability to comply with future regulations, sufficient liquidity and account security as the three most important features for selecting cryptocurrency funds and digital asset projects. One anonymous respondent told The Trade their believe that cryptocurrency “is the future of investing,” leading the publication to conclude that the general vive among respondents is cautious optimism for the industry.

Since the bombshell announcement by J.P. Morgan Chase to develop their own currency, the JPM Coin, bank adoption and institutional investment has been on the rise. Harvard, in particular, has been spearheading a trend in college endowments to both actively invest in cryptocurrency and crypto-related projects. More recently, the Ivy League University put some of its $39 billion endowment towards an investment into Blockstack Tokens, a startup that is attempting to revolutionize decentralized computing.

While cryptocurrency has drawn criticism for its severe price volatility, particularly throughout 2018’s “crypto winter” market pricing, the industry is on the rise throughout 2019. Adoption has continued to be a source of optimism for both investors and developers, as the industry expands into new sectors and finds more advocates in the sphere of fintech.

The post Study Finds 94% of Endowments Are Investing in Cryptocurrency appeared first on Ethereum World News.

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Skrill Joins the League of Cryptocurrency Trading Services

Skrill has become the latest member of the rapidly expanding cryptocurrency trading platform market. The company recently announced that it was extending the use of its Skrill wallet to involve cryptocurrency trading services. This development, according to the company, will aid its customers to navigate their way through the maze of cryptocurrency trading.

Buy and Sell Cryptocurrency on Skrill

On Wednesday, July 25, 2018, Skrill, an online wallet, and mobile payments operator announced that it was now into crypto trading, as its customers can now get involved with buying and selling cryptocurrencies using the Skrill wallet. This includes trading in Bitcoin, Ether, Bitcoin Cash, and Litecoin.  The platform also supports more than 40 fiat currencies.

Before entering the virtual currency trading market, Skrill was mostly focused on the online gambling niche. The company, however, is not stopping at crypto trading, as it plans to increase the service to additional markets in the next few months. It also plans to add the crypto capabilities to its mobile app and the NETTELLER digital wallet. NETTELLER is a product of its parent company, Paysafe.

Available in Over 30 Countries

Apart from its headquarters in the United Kingdom, the company’s new cryptocurrency capability has expanded to more than 30 countries. These places include the UAE, Australia, and Canada. However, some of its key markets including Russia and the United States, are yet to be updated.

Speaking on the launch of the company’s cryptocurrency service, Skrill CEO, Lorenzo Pellegrino, said:

The world of cryptocurrency trading is exciting and dynamic, and our digital wallet service very much lends itself to this environment. I’m confident that the ability to trade in cryptocurrencies quickly and easily through Skrill will appeal to consumers both now and in the future. We know many people want to experiment with cryptocurrency trading but don’t know where to start, and we’ve made the entire process very straightforward.

According to Pellegrino’s statement, customers will be restricted to buying and selling cryptocurrencies. The platform hasn’t launched any feature to allow transfer of virtual coins between wallets as well carrying out online purchases via its payment gateway using crypto coins. However, the company promises that such upgrades are in the works.

Skrill faces stiff competition from the likes of other payment processors that offer cryptocurrency trading options. Platforms like Square, Circle, and Robinhood already control a significant share of the market.

What do you think about the news of Skrill launching its cryptocurrency trading service? Do you think it will be able to compete with industry behemoths like Square, Robinhood, and Coinbase? Keep the conversation going in the comment section below.

Image courtesy of Ethereum World News archives.

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